Shotwell has already switched (in the recent 0.13.0 release) to using
OAuth for Picasa authentication.  See

http://redmine.yorba.org/issues/3445#note-8

So I'm marking this bug fixed.

** Changed in: shotwell (Ubuntu)
       Status: Triaged => Fix Released

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https://bugs.launchpad.net/bugs/782690

Title:
  Picasa upload not secure: asks for Google Password

Status in Shotwell:
  New
Status in “shotwell” package in Ubuntu:
  Fix Released

Bug description:
  Binary package hint: shotwell

  It would be better if it used some sort of OAuth authentication token,
  so that the user's password is more secure and so that only the
  necessary permissions are granted to Shotwell (i.e. only to interact
  with Picasa, and not read Gmail emails, etc).

  Ubuntu 11.04.
  Shotwell 0.9.2

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